Card reader device for a cell phone and method of use

ABSTRACT

A card reader device for reading a card having data stored on a magnetic stripe incorporated into the card is disclosed in which the card reader device comprises a read head for passing a magnetic stripe of a card by to read data stored on a magnetic stripe and for producing a signal indicative of data stored on a magnetic stripe, a signal setting device for setting an amplitude of the signal indicative of data stored on a magnetic stripe, and an output jack adapted to be inserted into a microphone input associated with a cell phone for providing the signal indicative of data stored on a magnetic stripe to a cell phone. Data stored on the card and sensed by the card reader device is decoded by components such as a microphone amplifier, an analog to digital converter, and a microprocessor already resident in a cell phone.

BACKGROUND

This disclosure relates to a card reader device for use with a cellularphone for reading a magnetic stripe card and more particularly to aportable card reader device which senses the magnetically recordedinformation stored on a magnetic stripe card and conveys this sensedinformation via an analog waveform to a cell phone for furtherprocessing.

Plastic cards having a magnetic stripe embedded on one side of the cardare prevalent in every day commerce. These cards are used in varioustransactions such as to pay for purchases by using a credit card, adebit card, or a gasoline charge card. A charge card or a debit card mayalso be used to transact business with a bank through use of anautomated teller machine (ATM). The magnetic stripe card is capable ofstoring data by modifying the magnetism of magnetic particles embeddedin the stripe. The data stored on the magnetic stripe may be sensed orread by swiping the stripe past a read head. The analog waveformobtained by sensing the magnetic stripe must undergo a process known asdecoding to obtain the digital information stored in the magnetic stripeof the card. Conventional magnetic stripe card readers are comprised ofboth relatively simple sensing components as well as the more costly andcomplex decoding and communication components.

It is typical in a magnetic stripe card to locate the magnetic stripe0.223 inches from an edge of the card with the stripe being 0.375 incheswide. The magnetic stripe contains up to three tracks of digital datawith each track being 0.110 inches wide. Tracks one and three aretypically recorded at 210 bits per inch, while track two typically has arecording density of 75 bits per inch. Each track can either contain7-bit alphanumeric characters, or 5-bit numeric characters. Track onestandards were created by the airlines industry, the International AirTransport Association. Track one can contain information reserved forthe bank that issued the card and magnetically encoded data like theprimary account number, the user's name, a country code, an expirationdate for the card, and 79 characters of discretionary data, all mixed inwith separators and other specialized computer characters. The secondtrack, the track most commonly used, is in a format defined by theAmerican Bankers Association. The second track can contain the primaryaccount number, the country code, the card's expiration date, 40characters of discretionary data, and separator characters. The thirdtrack is in a format called THRIFT and was originally intended for usewith ATMs. Unlike tracks one and two, which are read only tracks, thethird track was intended for read and write applications. However, forthe most part, the third track is hardly ever used. Further, theInternational Organization for Standardization (ISO), aninternational-standard setting body, has a set of standards fordescribing the physical dimensions and recording technique onidentification cards which are known as ISO 7810 and 7811.

Magnetic stripe cards having these standard specifications can typicallybe read by point-of-sale devices at a merchant's location. When the cardis swiped through an electronic card reader at the checkout counter at amerchant's store, the reader will usually use its built-in modem to dialthe number of a company that handles credit authentication requests.Once the account is verified and an approval signal will be sent back tothe merchant to complete a transaction.

Although magnetic stripe cards are universally used by merchants thereis no way for an individual to take advantage of the card to receive apayment from another individual (who is not a merchant) by swiping thecard through a simple reader attached to his cell phone. For example,one individual may owe another person money for a debt, but one way topay the debt is to provide cash or a check. It would be convenient to beable to use a credit card or a debit card to pay off the debt. Inaddition, it is advantageous for an individual to make payment toanother individual or merchant by swiping his magnetic stripe cardthrough a reader connected to a cell phone. However, there is presentlyno way for an individual to send payment to an individual or merchantthrough the use of a magnetic stripe card by using a simple magneticstripe card reader connected to a cell phone.

Therefore, it would be desirable to have a simple card reader devicethat would allow an individual to receive or send payment through theuse of a magnetic stripe card. It is also desirable to provide a simpleportable card reader device that can be connected to a cell phone withthe cell phone providing the decoding function for the sensed magneticstripe information as well as acting as a point-of-sale device. The cellphone can have an application programmed therein to decode datacontained on a magnetic stripe to submit the card data to a company or athird party that handles credit authentication requests.

BRIEF SUMMARY

In one form of the present disclosure, a card reader device for readinga card having data stored on a magnetic stripe incorporated into thecard the card reader device comprises a read head for passing a magneticstripe of a card by to read data stored on a magnetic stripe and forproducing a signal indicative of data stored on a magnetic stripe, asignal setting device for setting an amplitude of the signal indicativeof data stored on a magnetic stripe, and an output jack adapted to beinserted into a microphone input associated with a cell phone forproviding the signal indicative of data stored on a magnetic stripe to acell phone, wherein application software resident on the cell phonedirects the processor of the cell phone to decode the signal provided tothe microphone input to produce the digital data stored on the card.

In another form of the present disclosure, a card reader device forreading a card having data stored on a magnetic stripe incorporated intothe card in which the device comprises a read head for passing amagnetic stripe of a card by to read data stored on a magnetic stripeand for producing a signal indicative of data stored on a magneticstripe, an amplifier for amplifying the signal indicative of data storedon a magnetic stripe, and an output jack adapted to be inserted into aninput associated with a cell phone for providing the signal indicativeof data stored on a magnetic stripe to a cell phone, wherein applicationsoftware resident on the cell phone directs the processor of the cellphone to decode the signal provided to the audio or line input toproduce the digital data stored on the card.

In yet another form of the present disclosure, a method for reading acard having data stored on a magnetic stripe incorporated into the cardis disclosed in which the method comprises the steps of providing a cardreader device comprising a read head for passing a magnetic stripe of acard by to read data stored on a magnetic stripe and for producing asignal indicative of data stored on a magnetic stripe, a signal settingdevice for setting an amplitude of the signal indicative of data storedon a magnetic stripe, an output jack adapted to be inserted into amicrophone input associated with a cell phone for providing the signalindicative of data stored on a magnetic stripe to a cell phone, passinga card having data stored on a magnetic stripe incorporated into thecard by the card reader device, and providing the signal indicative ofdata stored on a magnetic stripe to a cell phone for processing bycircuitry contained in a cell phone.

In light of the foregoing comments, it will be recognized that aprincipal object of the present disclosure is to provide a card readerdevice comprised of a very simple external device to be used inconjunction with a cell phone with application software provided toperform the decoding function.

A further object of the present disclosure is to provide a card readerdevice that can read and decode data stored on a magnetic stripe card bysensing the recorded data waveform and transmitting the data waveform toa cell phone where it is decoded with built in circuitry and applicationsoftware provided.

Another object of the present disclosure is to provide a card readerdevice that can read one or more tracks of data stored on a magneticstripe card.

A further object of the present disclosure is to provide a card readerdevice that is of simple construction and design and which can be easilyemployed with highly reliable results.

A still further object of the present disclosure is to provide a cardreader device that can be easily carried or stored.

Another object of the present disclosure is to provide a card readerdevice that does not require any source of power.

Another object of the present disclosure is to provide a card readerdevice that may be constructed in various shapes, designs, or forms.

A still further object of the present disclosure is to provide a cardreader device that can amplify data read from a magnetic stripe card. Insome constructions an amplifier resident in a card reader device mayrequire power which may be provided by a cell phone.

Another object of the present disclosure is to provide a card readerdevice that can operate with existing magnetic stripe cards.

Yet still another object of the present disclosure is to provide a cardreader device that can provide a signal indicative of data stored in amagnetic stripe and application software to a cell phone for the cellphone to decode the signal indicative of data stored in a magneticstripe to be processed to transact commerce.

These and other objects and advantages of the present disclosure willbecome apparent after considering the following detailed specificationin conjunction with the accompanying drawings, wherein:

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a side perspective view of a card reader device constructedaccording to the present disclosure;

FIG. 2 is a schematic diagram of a card reader device constructedaccording to the present disclosure;

FIG. 3 is a schematic diagram of another embodiment of a card readerdevice constructed according to the present disclosure;

FIG. 4 is a flowchart of a method of operation of a card reader deviceconstructed according to the present disclosure; and

FIG. 5 is a perspective view of a card reader device constructedaccording to the present disclosure.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

Referring now to the drawings, wherein like numbers refer to like items,number 10 identifies a preferred embodiment of a card reader deviceconstructed according to the present disclosure. With reference now toFIG. 1, the card reader device 10 is shown to comprise a housing 12having a slot 14 and an output jack 16 extending out from the housing12. The jack 16 is adapted to be inserted into a socket 18 such as amicrophone input or a line in audio input of a cell phone 20. The jack16 may be a TRS (tip, ring, sleeve) connector also known as an audiojack, phone plug, jack plug, stereo plug, mini-jack, or mini-stereoaudio connector. The jack 16 may be formed of different sizes such asminiaturized versions that are 3.5 mm or 2.5 mm. It is also possible andcontemplated that the jack 16 may be retractable within the housing 12.

The slot 14 is wide enough and deep enough to accept a card having amagnetic stripe. In particular, the slot 14 is deep enough that themagnetic stripe will fit within the slot 14. The slot 14 also has alength that is less than the length of the card to be inserted into theslot 14. However, it is also possible and contemplated that the slot 14may have other lengths if desired, for a given application. The housing12 may take on different shapes and sizes, as will be discussed furtherherein.

FIG. 2 illustrates a schematic diagram of the card reader device 10. Thecard reader device 10 comprises a read head 22, such as an inductivepickup head, having a coil 24 connected to a signal amplitude settingdevice 26 such as a resistor which is connected to the jack 16. A lead28 connects the jack 16 to the coil 24 to complete the circuit. A card30, such as a credit card, has a magnetic stripe 32 associated with thecard 30. As has been previously discussed, the magnetic stripe 32 mayhave three tracks with each of the tracks containing data. The cardreader device 10 is capable of reading one track, usually track two,when the device 10 is connected to the microphone input of the cellphone 20. As the magnetic stripe 32 of the card 30 is passed by the readhead 22 the read head 22 reads data or information stored in themagnetic stripe 32. Although not shown, the card 30 is inserted into theslot 14 in the housing 12 and the card 30 is swiped or passed by theread head 22. Data stored in the magnetic stripe 32 may be in the formof magnetic transitions as described in the ISO 7811 standards. As thecard 30 moves past the read head 22, magnetic transitions representingdata induce a voltage in the coil 24. A voltage signal or waveformproduced by the coil 24 is provided to the resistor 26 with the resistorsetting the amplitude of the waveform. This waveform is sent via thejack 16 into the microphone input socket 18 of the cell phone 20. A pairof wires 34 and 36 connect the socket 18 to an amplifier 38. Theamplifier 38 amplifies the waveform received from the card reader device10. The amplified waveform is provided to an analog to digital converterdevice (ADC) 40 where the waveform in analog form is converted intodigital samples of the analog waveform. The digital samples are sent toa microprocessor 42 for further processing, as will be explained. Forthe sake of clarity and brevity most of the components of the cell phone20 have not been shown. However, the cell phone 20 may also include suchcomponents as memory including flash ROM, SRAM, a camera, a battery, LCDdriver, a display, an antenna, a speaker, a Bluetooth circuit, and WIFIcircuitry. The flash ROM may contain programs, applications, and/or anoperating system for the cell phone 20.

The card reader device 10 is capable of being connected to the cellphone 20 for providing data stored in the magnetic stripe 32 of a card30. Once connected any magnetic stripe 32 that is swiped in the slot 14is read by the read head 22. The magnetic read head 22 generates ananalog waveform that results from changes in magnetization along thestripe 32 relative to the movement between the read head 22 and thestripe 32. The resistor 26 sets the amplitude of this signal and thissignal is provided to the cell phone 20. This signal is then amplifiedby the amplifier 38 contained in the cell phone 20. The ADC 40 of thecell phone 20 samples the amplified analog waveform at a given samplingrate and generates a stream of digital values or samples. These digitalsamples are processed by the processor 42 that can in turn provideinformation to a host system such as a third party or a company thathandles credit authentication requests. The processor 42 can communicatewith the host system via the cell phone network, WIFI, Bluetooth or anyother mode available to it. The host system may also send a signal tothe cell phone 20 to indicate that the transaction has been completed.The processor 42 may be controlled by a program or an application storedin memory or in a program storage area. The program or application canbe programmed to decode digital samples received from the ADC 40 and usethe decoded signals to contact a third party for authorizing atransaction. In this manner, a payment from the cardholder's account canbe transferred to the cell phone owner's account or allow the cell phoneowner to transfer payment to a merchant that accepts credit cardtransactions.

With reference now to FIG. 3, another embodiment of a card reader device80 is illustrated. The card reader device 80 comprises a housing 82having an inductive read head 84 with coil 86 connected to an amplifier88 which is connected to an output jack 90. The output jack 90 extendsout of the housing 82 and is adapted to be inserted into a line in audioinput or a stereo line in input associated with a cell phone (notshown). A wire 92 connects the jack 90 to the coil 86. Although notshown in this particular drawing, a slot is formed in the housing 82near the coil 86 to allow a card having a magnetic stripe to be passedby the coil 86. Data or information stored in the magnetic stripe isread by the coil 86. The coil 86 produces a waveform indicative of datastored in the magnetic stripe and this waveform is provided to theamplifier 86. The amplified waveform is then transmitted to the cellphone via the jack 88. The amplified waveform may be provided to an ADCdevice for converting into digital samples to be processed by amicroprocessor in the cell phone. Once processed, the cell phone maycontact a third party for processing a transaction in either direction(i.e., to or from the cell phone owner's account).

Since the card reader device 80 uses the line in audio input of the cellphone, the card reader device 80 is capable of transmitting two tracksfrom the card being read. As has been previously discussed, a magneticstripe may have up to three tracks with each of the tracks containingdata. For example, the card reader device 80 may read tracks one and twoand send these signals to the cell phone as the left and right channelsof a stereo signal. However, with the card reader device 80 any two ofthe three tracks, usually tracks one and two, may be read and decodedwhen the card reader device 80 is connected to the stereo line ininputs. In some situations or constructions, it is possible that theamplifier 88 may need to be powered. The amplifier 88 may be poweredfrom a power source resident in the cell phone to which the device 80 isconnected.

FIG. 4 illustrates a flowchart diagram of a method of operation 100 ofthe card reader device 10. The method 100 begins operation at a step 102in which a magnetic stripe card 30 is swiped through the slot 14. In anext step 104, the read head 22 reads data stored in the magnetic stripe32 and generates an analog signal or waveform indicative of data storedin the magnetic stripe 32. The waveform then has its amplitude set bythe resistor 26 in a step 106. Next, in a step 108, the set waveform isprovided to the cell phone 20 via the output jack 16 through the socket18. In a next step 110, the amplifier 38 amplifies the set waveform. Thewaveform is provided to the analog to digital converter device 40 forconversion to a digital signal in a step 112. An application or aprogram in the cell phone 20 decodes the digital signal in a next step114. In a next step 116, the program contacts a third party to authorizea transaction using the decoded signal. The third party eitherauthorizes or denies the transaction in a last step 118. For example, ifthe third party authorizes the transaction then money deducted from theaccount of the cardholder is transferred into an account associated withthe cell phone owner or vice versa. In this way, a debt can be collectedor paid by use of the card reader device 10. Further, the card readerdevices 10 or 80 may be employed to transact a one-way transaction inwhich money can be credited to an account. In essence, the card readerdevices 10 or 80 allow a user to become either a micro-merchant (payee)or a customer (payer) without having to purchase expensive card readerdevices or software.

With particular reference now to FIG. 5, another embodiment of a cardreader device 150 is shown. The card reader device 150 has a housing 152that is in the shape of an acorn. The device 150 has a slot 154 thatruns along a length or a width of the housing 152. The slot 154 has adepth that is deep enough to allow a magnetic stripe of a card to passthrough the slot 154. The slot 154 has a length that can be less thanthe length of a card to be read. The device also has a jack 156extending out of the housing 152. The device 150 may contain thecomponents shown in either FIG. 2 or FIG. 3. In particular, the device150 may be easily carried and connected to a cell phone when needed. Thedevice 150 is also small enough that it may be easily stored when not inuse. Other shapes, sizes, or designs for the card reader devices 10, 80,or 150 are possible and contemplated.

From all that has been said, it will be clear that there has thus beenshown and described herein a card reader device which fulfills thevarious objects and advantages sought therefore. It will become apparentto those skilled in the art, however, that many changes, modifications,variations, and other uses and applications of the subject card readerdevice are possible and contemplated. All changes, modifications,variations, and other uses and applications which do not depart from thespirit and scope of the disclosure are deemed to be covered by thedisclosure, which is limited only by the claims which follow.

1. A card reader device for reading a card having data stored on amagnetic stripe incorporated into the card the device comprising: a readhead for passing a magnetic stripe of a card by to read data stored on amagnetic stripe and for producing a signal indicative of data stored ona magnetic stripe; a signal setting device for setting an amplitude ofthe signal indicative of data stored on a magnetic stripe; and an outputjack adapted to be inserted into a microphone input associated with acell phone for providing the signal indicative of data stored on amagnetic stripe to a cell phone.
 2. The card reader device of claim 1wherein the read head is inductive.
 3. The card reader device of claim 1wherein the signal setting device comprises a resistor.
 4. The cardreader device of claim 1 wherein the output jack comprises a 3.5 mmjack.
 5. The card reader device of claim 1 wherein the signal indicativeof data stored on a magnetic stripe is an analog signal.
 6. The cardreader device of claim 1 wherein the read head and the signal settingdevice are contained within a housing.
 7. The card reader device ofclaim 6 wherein the output jack extends out of the housing.
 8. The cardreader device of claim 6 wherein the housing comprises a slot into whicha card having a magnetic stripe may be inserted and swiped.
 9. The cardreader device of claim 8 wherein the slot has a length and a card has alength and the length of the slot is less than the length of the card.10. The card reader device of claim 1 wherein the output jack comprisesa 2.5 mm jack.
 11. A card reader device for reading a card having datastored on a magnetic stripe incorporated into the card the devicecomprising: a read head for passing a magnetic stripe of a card by toread data stored on a magnetic stripe and for producing a signalindicative of data stored on a magnetic stripe; an amplifier foramplifying the signal indicative of data stored on a magnetic stripe;and an output jack adapted to be inserted into an input associated witha cell phone for providing the signal indicative of data stored on amagnetic stripe to a cell phone.
 12. The card reader device of claim 11wherein the read head is inductive.
 13. The card reader device of claim11 wherein the read head and the amplifier are contained within ahousing.
 14. The card reader device of claim 13 wherein the housingcomprises a slot into which a card having a magnetic stripe may beinserted and swiped.
 15. The card reader device of claim 13 wherein theoutput jack extends out of the housing.
 16. The card reader device ofclaim 11 wherein the amplifier is capable of amplifying a second signalindicative of data stored on a magnetic stripe.
 17. The card readerdevice of claim 16 wherein the output jack is adapted to provide thesecond signal indicative of data stored on a magnetic stripe to a cellphone.
 18. The card reader device of claim 11 wherein the inputassociated with a cell phone is the line in audio input.
 19. A methodfor reading a card having data stored on a magnetic stripe incorporatedinto the card, the method comprising the steps of: providing a cardreader device comprising a read head for passing a magnetic stripe of acard by to read data stored on a magnetic stripe and for producing asignal indicative of data stored on a magnetic stripe, a signal settingdevice for setting an amplitude of the signal indicative of data storedon a magnetic stripe, an output jack adapted to be inserted into amicrophone input associated with a cell phone for providing the signalindicative of data stored on a magnetic stripe to a cell phone; passinga card having data stored on a magnetic stripe incorporated into thecard by the card reader device; and providing the signal indicative ofdata stored on a magnetic stripe to a cell phone for processing bycircuitry contained in a cell phone.
 20. The method of claim 19 furthercomprising the step of providing a housing for containing the read headand the signal setting device.
 21. A method for reading a card havingdata stored on a magnetic stripe incorporated into the card, the methodcomprising the steps of: providing a card reader device comprising aread head for passing a magnetic stripe of a card by to read data storedon a magnetic stripe and for producing a signal indicative of datastored on a magnetic stripe, an amplifier for amplifying the signalindicative of data stored on a magnetic stripe, and an output jackadapted to be inserted into an input associated with a cell phone forproviding the signal indicative of data stored on a magnetic stripe to acell phone; passing a card having data stored on a magnetic stripeincorporated into the card by the card reader device; and providing thesignal indicative of data stored on a magnetic stripe to a cell phonefor processing by circuitry contained in a cell phone.
 22. The method ofclaim 21 further comprising the step of providing a housing forcontaining the read head and the amplifier.